The U.S. trade deficit in manufactures and the Chinese surplus continued to surge in 2012

Ernest H. Preeg, Ph.D., senior adviser for international trade and financeU.S. and Chinese exports of manufactures grew at a slower pace in 2012, although the 8% growth in Chinese exports was almost double the 5% U.S. growth. Far more important was the continued surge in the trade imbalances -- the U.S. deficit and the Chinese surplus -- for a third year. The U.S. deficit rose by 8% in 2012, to $498 billion, while the Chinese surplus soared by 15%, to $755 billion. The $35 billion increase in the U.S. deficit resulted in the loss of 140,000 to 280,000 American manufacturing jobs. Policy Analysis